Why you still need a Lasting Power of Attorney when you have joint bank accounts

If you and your partner use joint bank accounts, you might reasonably assume those accounts are enough to keep things running if one of you becomes ill. Joint accounts are convenient for day to day life, but they do not give the same legal powers as a Lasting Power of Attorney. An LPA ensures someone you trust can manage your finances and make health decisions for you if you cannot, protecting both you and your partner.

Why joint accounts are not enough

Joint bank accounts allow both named account holders to withdraw and manage money while you both have capacity. However, banks and building societies have legal responsibilities when one account holder loses mental capacity. They may place restrictions on the account to protect the person who lacks capacity, and that can limit what the remaining partner can do.

What banks may do

Banks have discretion to restrict withdrawals to essential payments such as mortgage, council tax and direct debits. They may also require evidence of permission to use funds for other purposes, or even ask the Court of Protection to appoint a Deputy before allowing non-essential transactions. That means the healthy partner could find themselves unable to pay for things like home repairs, holidays already booked, or unusual but necessary expenses, without extra paperwork and delay.

How a Lasting Power of Attorney helps

Making a Lasting Power of Attorney in advance avoids the uncertainty that follows a sudden illness, stroke or diagnosis of dementia. An LPA lets you appoint an Attorney or Attorneys to act on your behalf, under the terms you choose. There are two separate LPAs to consider, each serving a different purpose.

Property and Affairs LPA

This LPA covers your financial affairs, including bank accounts, bills, benefits and property. If you register a Property and Affairs LPA and name your partner as your Attorney, they can continue to manage joint finances smoothly, with clear legal authority. You can specify when the LPA can be used - either immediately, with your consent, or only if you lose mental capacity. Registering the LPA with the Office of the Public Guardian is what gives it legal effect.

Health and Welfare LPA

The Health and Welfare LPA gives your Attorney authority to make decisions about your daily routine, medical treatment and care. This LPA only takes effect if you lose the ability to make those decisions yourself. It cannot be used just because you are away or out of the country. For guidance on how LPAs work and how to register one, you can read the government guidance at gov.uk.

Practical steps you can take now

1. Talk to your partner - decide who you would both trust to act as Attorney. You can appoint more than one person, and you can set rules about how they should act.
2. Choose the right type - for managing bank accounts, a Property and Affairs LPA is essential. Consider a Health and Welfare LPA too, for medical decisions.
3. Register early - it can take several weeks for an LPA to be processed by the Office of the Public Guardian, so allow time. If you wait until capacity is in question, you may have left things too late.
4. Keep documents accessible - tell your bank and your family where the LPA papers are stored, and give copies to the people involved if you wish.
5. Review periodically - life changes such as divorce, remarriage, or moving house might mean you want to update your attorneys or the terms of the LPA.

Examples that show the difference

Imagine one partner suffers a stroke and cannot manage finances. Without an LPA, the bank may restrict the joint account, delaying payments for essential home maintenance. With a registered Property and Affairs LPA, the other partner can continue managing funds for repairs without having to go to court. Another example is overseas travel. If you need someone to handle financial matters while you are abroad, an LPA appointed to act immediately will let them do so with your consent.

Need help making an LPA?

If you would like professional support, we can guide you through choosing the right attorneys, tailoring the terms of an LPA, and registering it correctly. Find out about our Lasting Powers of Attorney services at Beneficial Family Wills - Lasting Powers of Attorney.

While you are planning, it is also a good time to review or make a will. We offer will writing services to ensure your wider estate planning is in order, see Will Writing for more information.

If you have questions or want to arrange a chat, please get in touch and we will help you put the right protections in place for you and your partner.

For further reading about how banks handle accounts when capacity is in doubt, see guidance from UK Finance and the bank that holds your accounts. If you need immediate practical advice, or you are concerned about restrictions on a joint account, contact us and we can advise the next steps, or visit our pages on Probate and Trusts if you are planning more complex arrangements.